Blüm Holdings, Inc. (OTCQB:BLMH) reported its financial results Wednesday for the first quarter ended March 31, 2024, revealing revenue of $6.78 million, down by 16% from $8.1 million in the same period of 2023. The California cannabis company attributed the revenue decline to the continued elimination of non-performing legacy operations during the first quarter of 2024 and transitioning a single retail location to delivery only.
"Despite challenges, our commitment is to maintain a strong gross margin and reduce operating expenses," Patty Chan, Blüm's chief financial officer stated. "We remain optimistic about the opportunities ahead and are confident in our ability to capitalize on them."
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Q1 2024 Financial And Operational Highlights
- Gross profit was $3.61 million, or 53% versus $4.38 million or 54% in the first quarter of last year.
- Net loss from continuing operations was $3.06 million or $0.31 loss per share, compared to net loss of $7.81 million or $0.84 loss per share in the comparable period of 2023.
- Operating expenses amounted to $6.1 million, a decrease of 34% from $9.25 million in the first quarter of 2023.
- For five consecutive quarters in a row, the company has maintained a gross margin of above 50%, landing at 53% for the first quarter of 2024.
- In line with its strategic realignment, Blüm divested its final California cultivation facility in January 2024, focusing on expanding profitable cannabis assets and brand development.
- Earlier this year, Unrivaled Brands, Inc. underwent a corporate reorganization to become a subsidiary of Blüm Holdings, Inc. All Unrivaled shares were converted to Blüm shares, with trading starting as "BLMH" on the OTCQB on February 12, 2024. Additionally, Unrivaled executed a 1-for-100 reverse stock split.
Price Action
Blüm Holdings shares closed Wednesday's market session 15.87% higher at 73 cents per share.
Photo: Courtesy of Branding Pot via Shutterstock
